What Accounts for China's Trade Balance Dynamics?

Yin Zhang () and Guanghua Wan

No RP2004-55, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China's trade balance fluctuations in the period of 1985-2000. Efforts are made to distinguish the forces which underlie the long-run trend in trade balance from those with transitory impacts. The effects of four types of shock are examined—the foreign supply shock, the domestic supply shock, the relative demand shock, and the nominal shock. Among other findings, two emerge as important.

Keywords: Business cycles; Foreign exchange; International trade (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (2)

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Journal Article: What accounts for China's trade balance dynamics? (2007)
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